News

World Bank Carbon Fund Project in Nicaragua Buying Carbon-Equivalent Emission Reductions

Maderas_preciosas

6 June 2008: The World Bank's Carbon Fund is facilitating a

US$8.37 million project in southern Nicaragua that plans to turn 600 hectares

of privately-owned former cattle ranches into new-growth teak forests. The Nicaragua Precious Woods Project began in August 2006,

and intends to absorb nearly 300,000 tons of carbon emissions by the year 2017

while conserving approximately 350 hectares of secondary forest and mature

trees.

This project will be one of the first carbon emission reduction projects

in the Clean Development Mechanism's Land Use, Land Use Change and Forestry

sector, with the World Bank's Carbon Fund “buying” 297,045 tons of

carbon-equivalent emission reductions generated from the project, or 26 percent

of the total, by 2017 at US$4 per ton. [World

Bank Project Report]